Material Participation Changes?

[Waterl]

For my 2018 personal taxes, turbo tax is giving the option to material participate in rental activities received on a K1. I meet the qualification to materially participate (my husband and I own 100%, and put in more than 100 hrs a year.) We do not qualify as real estate professionals, we do actively participate.

I THOUGHT you could not materially participate in rental activity... I even went back to 2017, and it doesn't even give me the option. Did something change this year? Do I answer yes since I do qualify or is there an issue with the software (it seems buggier this year..). It appears to still make it passive income (as I'm not a real estate pro), but I'm not sure what else it affects and if I'll have issues since the material participation box is now checked on the form.

Any thoughts would be helpful.

[Anonymous_]

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@Waterl wrote:

....It appears to still make it passive income (as I'm not a real estate pro)....

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You need to materially participate as a real estate professional for the rental activity to be classified as a nonpassive activity.